Guinness Global Energy X GBP

A concentrated global energy fund targeting long-term capital growth.

  • 575.12p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.24%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.00%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 22 May 2020, fund data last updated 24 February 2016

The fund offers the prospect of medium to long term capital growth, via exposure to an equity portfolio of global energy stocks. The fund can invest in companies engaged in the production and distribution of oil, natural gas, coal, alternative energy, nuclear and utilities. However, it predominantly focuses upon oil and natural gas. It is a concentrated portfolio of some 30 stocks, which is essentially equally weighted amongst its constituents, all of which are listed and at least 90% of which have a market capitalisation of >$1bn.

Fund summary

Sector Global
Structure OFFSHORE FUND
Launched February, 2012
Size £86m
Yield 0.00%
Charging basis Income
Dividends paid Acc units only.

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 1.24%

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Investment process

The managers describe their process as split 50:50 between top down and bottom up: Top Down: In house proprietary models are used to map the underlying dynamics of the different energy markets which the fund can potentially invest in ie oil, gas, coal etc. These are then used to develop target weightings for the subsectors of the portfolio; integrated majors, E&P, services, refiners, coal producers, alternative energy etc. Bottom Up: Designed to select the best stocks to populate the top down template. The process is quant driven, with a value bias. Approximately 370 eligible stocks with a market cap of over $1bn are screened weekly and scored, based on four criteria; Value, Quality (return on capital), Earnings Momentum and Stock Price Momentum. This list is then reduced to 100, which are analysed in more detail, via financial modelling, thus allowing the 30 or so most appropriate stocks to be chosen. The holdings are equally weighted, allowing an acceptable level of fund concentration, whilst also reducing stock specific risk.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.37%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 92.70%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Tim Guinness

Guinness read engineering at Cambridge University and, upon graduation in 1968, completed a Master's Degree in Management Science at the Sloan School M.I.T. in the United States. His banking career began at Baring Brothers in 1970 before he moved to Guinness Mahon in 1977, becoming head of its small investment division in 1982, which in 1987 was injected into Guinness Flight Global Asset Management Limited ("GFGAM"). In 1997, GFGAM acquired Hambro Fund Management Limited and changed the name of the company to Guinness Flight Hambro Asset Management, with Guinness becoming CEO of the enlarged company. Following the merger of Guinness Flight and Investec Asset Management in 1998, he became Joint Chairman of the company. In 2003 he retired from Investec and founded a new specialist equity management operation that trades in the US as Guinness Atkinson Asset Management and in the UK as Guinness Asset Management.

Track record

Tim Guinness has 10.7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.37%. During the worst period of relative performance (from January 2006 - November 2008) there was a decline of 32% relative to the index. The worst absolute loss has been 35%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 93%.

Periods of worst performance

Absolute -35.00% (December 2007 - November 2008)
Relative -32.00% (January 2006 - November 2008)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Portfolio

Approximately 30 stocks. The portfolio has a value bias, is equally weighted and remains fully invested.

Constraints

At least 90% is held in stocks with a market cap of over $1bn. Max 20% exposure to emerging markets/ economies. Unconstrained by its benchmark

Key Investor Information

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